Sale of Lode Mine with Royalties Applied to Purchase Price is a type of transaction in which the seller of a lode mine offers a discounted purchase price that includes the royalties due to the seller from the operation of the mine. This type of sale is beneficial for both the buyer and the seller as the buyer can acquire the mine at a reduced cost while the seller does not need to wait for the royalties to accumulate before receiving payment. There are two main types of Sale of Lode Mine with Royalties Applied to Purchase Price: lump-sum sales and installment sales. In a lump-sum sale, the buyer pays the full discounted purchase price plus the royalties due at closing. In an installment sale, the buyer pays the discounted purchase price in installments, with the royalties due as each installment is paid.